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NEW YORK (
) -- "Repeat after me, we are not Europe and it's not 2008," Jim Cramer told the viewers of his
TV show Monday after yet another gut-wrenching day on Wall Street.
Cramer said with so many comparisons being made between the U.S. and Europe and 2008 versus today, he highlighted the reasons why today's markets are totally different.
"The U.S. is not Europe," Cramer reiterated. He said that first of all, we have one currency, unlike Europe's multiple currencies. Second, Cramer noted that the U.S. has only one central bank, unlike Europe. Thirdly, Cramer said that the U.S. has the capability to act quickly, much unlike Europe who has been dragging their crisis on for month after month.
Fourth, Cramer said that the U.S. has a mix of natural resources at its disposal to help it out of economic weakness. And fifth, unlike the U.S., the Europeans are still in total denial about the size and scope of their crisis.
So why is today not a replay of 2008? Cramer said three reasons. First, corporate balance sheets have regained a solid footing. Second, earnings are holding up and multiples sit at just 10 times earnings, compared to over 30 times earnings before the crash in 1987. Lastly, Cramer said that the markets now have a support systems in place to prevent another 2008 panic.
Cramer said in no uncertain terms that Greece needs to be resolved, even if that means by default. He said that Europe's multiple political agendas are crippling the markets, but the bottom simply won't come until a collapse in Greece finally happens.